Lib Dems plan to cut graduate debt for public sector workers

Doctors, nurses and teachers would have a proportion of their student loans written off if they continue to work in the NHS or state schools, under Liberal Democrat plans to overhaul university finance.

- Rachel Sylvester Political Editor

Graduates working in essential public sector roles would have 20% of their debt scrapped after 10 years. The programme could eventually be extended to the police and armed forces as part of a drive to improve public service recruitment and retention.

The initial scheme, modelled on a similar system in Australia, would cost about £300m a year, according to the Lib Dems' policy paper.

The party will set out its plans to shake up student loans more than a decade after former leader Nick Clegg was forced to apologise for breaking a 2010 manifesto pledge not to raise tuition fees as part of the coalition government. The issue became toxic for the Lib Dems and led to their collapse in the polls and evisceration at the 2015 general election.